CIPC annual returns made easy with LMS

Submitting the CIPC annual returns for your company easily falls under the radar when the business owner is focused on the management of his/her operation. The consequences of not meeting the filing requirements for these returns can be detrimental to the compliance status of your company and can cause significant administration headaches.

Through professional secretarial services, we can help ensure that your company meets the deadlines for its annual return submission to the CIPC. Our years of experience and know-how of the regulations surrounding the CIPC afford us the best skills to complete these returns accurately, on your behalf.

What are CIPC annual returns?

An annual return with the Companies and Intellectual Properties Commission (CIPC) is a statutory return that all registered companies are required to complete to retain their active status. Failure to complete your CIPC annual returns could result in the deregistration of your company. The legal effect is that the juristic personality is withdrawn, resulting in the termination of the company’s existence.

Non-compliance with the Companies Act is declared 30 business days from the date that the company was due to file its annual return. This due date is determined annually by the initial establishment date of the company. To better mitigate the risk of missing your company’s annual returns, seek assistance from the professionals at LMS.

Why must my company file an annual return?

Submitting annual returns with the CIPC, and maintaining compliance, assures an active registration with the CIPC. Without it, the CIPC can assume that your company is inactive and begin an automatic deregistration process.

Where an annual return is found to be incorrect, your company may face consequences of non-compliance. These consequences can occur in the following ways:

  • Should your annual return contain a miscalculation of the company’s annual turnover or incorrect information, you will be liable to a fine or imprisonment as it is a direct contravention of the Companies Act.
  • The CIPC can commence an investigation of your company to determine whether or not compliance with the Companies Act is met. Once this investigation is complete, the CIPC will either excuse the matter, set a meeting to resolve the issue, refer the matter to the National Prosecuting Authority or issue a compliance notice.
  • If a compliance notice has been issued but not met, the CIPC will process an application to the court to impose a fine for non-compliance.
  • The CIPC can apply for a winding-up application on the grounds of fraudulent or illegal behaviour from your company if a compliance notice has been issued and ignored.

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    What are the advantages of filing an annual return?

    The primary advantage of submitting your company’s annual return is that it maintains full compliance with the CIPC. The registration and compliance of your company positions your business to grow and allows room for more opportunities.

    The successful submission of your annual return maintains CIPC registration. Should you not comply by not filing these returns or filing them late, you will be subject to penalty fees and can face the deregistration of your company.

    Frequently asked questions

    Your company’s annual return is used to help the CIPC determine whether your company is still doing business and whether it will be in the future. These returns are also used to gauge compliance with the Companies Act.

    Due to the sensitive nature of the information required for a successful annual return, it is best to utilise an authorised representative. The professionals at LMS have the authorisation, experience and knowledge needed to ensure that your company completes its annual return correctly and on time.

    The due date for annual returns differs from company to company as you are required to file this return within 30 business days from the registration date of your entity. Close corporations are required to file from the first business day of the month it was registered.

    A tax return to SARS focuses on the taxable income of your company to determine its tax liability. An annual return with the CIPC, however, is a summary of the most relevant information regarding the company. Compliance with one is not interchangeable as they are processed under two different legislations and deal with different company information.

    Yes. Regardless of whether the company was active or inactive for the period of the annual return, if you wish to maintain your company’s registration with the CIPC, you are legally required to fulfil these filing obligations.

    Yes. To voluntarily deregister your company, the CIPC requires all annual returns to be up to date.

    If you require assistance filing CIPC annual returns for your company, the professionals at LMS can assist. Our industry expertise helps you ensure compliance with the Companies Act and maintain your company’s registration with the CIPC. Contact our team today for accurate and timeous filings.

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